About Mizrahi (The One)
On October 18, 2023, the Ontario Superior Court of Justice appointed a receiver for “The One” and certain related entities. Tarion continues to closely monitor the situation involving the Mizrahi Development Group. We understand that purchasers of pre-construction homes are concerned about the status of the project and what it means for their purchase agreements.
We encourage you to speak with your real estate lawyer if you have questions about your agreement of purchase and sale and the receivership process. Information about the receivership is available on the Receiver’s website.
Tarion will update this page from time to time.
Updated information for Purchasers
On October 18, 2023, the Ontario Superior Court of Justice appointed Alvarez & Marsal Canada Inc. as the receiver over The One and certain related entities (the “Receiver”). As at the above date, neither the appointment of the receiver nor the commencement of receivership proceedings have resulted in the termination or fundamental breach of The One agreements of purchase and sale and a stay of proceedings is in place.
During the first six months following its appointment, the Receiver will be conducting analysis on The One, including the agreements of purchase and sale, with a view to maximizing creditor recoveries. As such, the precise direction of the receivership proceedings and what that will mean for purchasers and agreements of purchase and sale is unknown as at the above date and may not become known until some time in 2024.
Once this analysis is complete and has been reported on by the Receiver, Tarion will update this webpage accordingly, including with respect to the filing of Deposit Protection claims, if applicable.
For more information about deposit protection you can visit our pre-possession warranty coverage and claims page, or our article on deposit protection.
How Tarion will support purchasers and owners
Under the Ontario New Home Warranty Plan Act, purchasers of new homes have deposit protection coverage up to certain limits in the event that a sale is not completed. For purchase agreements signed on or after January 1, 2018, deposit coverage depends upon the purchase price of the home. For homes with a purchase price of $600,000 or less, deposit coverage is up to $60,000. For homes with a sale price of over $600,000, deposit coverage is up to 10% of the purchase price to a maximum of $100,000.
Purchasers can have confidence that if purchase agreements are ultimately terminated as part of the court-ordered sale process or by transactions completed thereunder, and deposits are not refunded through the receivership process, then you will be able to submit a Deposit Protection claim to Tarion.
You can learn more about the deposit protection offered by Tarion here. There may also be a future claims procedure order made in the receivership proceedings, pursuant to which purchasers who paid deposits for pre-construction homes will be able to file claims.